David Einhorn Biography
David Einhorn is an American investor, hedge fund manager, and philanthropist. He was born as David M. Einhorn. Einhorn is the founder and president of Greenlight Capital, a long-short value-oriented hedge fund. He has received extensive coverage in the financial press for his fund’s performance not to mention his investing strategy and his positions.
Einhorn was ranked 44th in the Time 100 most influential list of people in the world in 2013. He started his fund in 1996 with $900,000 and has generated 16.5% annualized return for investors from 1996 to 2016.
David Einhorn Age
He was born on 20 November 1968. Davis is 50 years old.
David Einhorn Family
Einhorn was born to a Jewish family in New Jersey. He is the son of Stephen and Nancy Einhorn. The famous investor was Raised in Demarest, New Jersey and moved, at seven, with his family to Wisconsin. His father is the founder and president of Einhorn & Associates, a consulting firm, and Capital Midwest Fund, a venture capital fund.
He has one brother Daniel who works with his father.
David Einhorn Education
In 1987, David graduated from Nicolet High School in Glendale, Wisconsin. Einhorn graduated summa cum laude from Cornell University with a B.A. in Government from the College of Arts and Sciences in 1991. He was a member of the Sigma Alpha Epsilon fraternity at Cornell.
David Einhorn Career
Einhorn started Greenlight Capital in May 1996 with $900,000 in start-up capital. In May 2002, he gave a speech at the Sohn Investment Research Conference where he recommended shorting a mid-cap financial company called Allied Capital eventually disclosing that he himself had a substantial short position.
The day after the speech the company’s stock went down by 20 percent. Einhorn alleged the company of defrauding the Small Business Administration while Allied said that Einhorn was engaging in market manipulation, and illegally accessed his phone records using pretexting.
In January 2012, the U.K. Financial Services Authority (FSA) fined Einhorn and Greenlight Capital $11.2 million for trading on inside information. The FSA claimed Einhorn obtained information on the Punch Taverns Plc (PUB) equity fundraising by a broker representing the company prior to public knowledge of the event.
Over the following four days, Einhorn sold more than 11 million shares, avoiding a 29.9% stock price collapse and subsequent loss of about £5.8 million. Einhorn called the £7.2m fine unjust and inconsistent with the law but said he would pay it. The fine was the second largest levied on an individual in the history of Britain’s Financial Services Authority.David Einhorn Photo
David Einhorn Wife | Children
In 1993, Einhorn married Cheryl Strauss. She is a financial reporter and media consultant. They later divorced in 2017. He has three children with Cheryl, two daughters, Rachel and Naomi, and a son, Mitchell (Mitch). Einhorn lives in Westchester County, New York.
David Einhorn Net Worth
Wealth and philanthropy
As of February 2017, Forbes Magazine reported Einhorn to have an overall net worth of US$1.54 billion. He is the 432nd richest person in the United States and the 18th wealthiest hedge fund manager. Einhorn is a major contributor and board member of The Michael J. Fox Foundation.
In 2006, Einhorn finished 18th in the World Series of Poker main event and donated his winnings (over $650,000) to the foundation. He is also on the board of the Robin Hood Foundation and a contributor to numerous charities in the New York area.
In the Spring of 2009, as promised in his book Fooling Some of the People All of the Time, Greenlight Capital donated all of the general partner’s profits from the shorting of Allied Capital stock (an additional $6 million – Greenlight already donated $1 million in 2005 to Tomorrows Children’s Fund – to make a total of $7 million)
To three organizations (Tomorrows Children’s Fund, The Project On Government Oversight (POGO) and the Center for Public Integrity (CPI)). In 2012, Einhorn donated his winnings from the 2012 World Series of Poker Big One for One Drop Tournament (which had a one million dollar buy-in, and in which he won $4,352,000 for his 3rd-place finish) to City Year.
In July 2007, Einhorn shorted Lehman Brothers stock, believing that Lehman had massive exposures to illiquid real estate investments that were improperly accounted for. He also claimed that they used dubious accounting practices in their financial filings. Einhorn shared his thesis on Lehman in November 2007 at the Value Investing Congress.
When Bear Stearns had to be bailed out by the Federal Reserve in March 2008, Lehman was widely considered to be in a weak financial situation. In a speech at a conference in April, Einhorn announced his Lehman short position. In May, Lehman’s CFO Erin Callan held a private teleconference with Einhorn and his staff.
Einhorn publicly characterized Callan’s responses on the call in a negative light and Lehman stock fell sharply. Callan was fired a few weeks later when Lehman reported a $2.8 billion quarterly loss. Lehman would declare bankruptcy in September 2008.
On May 26, 2011, Einhorn called for Steve Ballmer, CEO of Microsoft, to step down after Microsoft had been passed by both Google and Apple in market value.
Green Mountain Coffee Roasters
Speaking at the Value Investing Congress in New York City on October 17, 2011, Einhorn publicly announced his short position in Green Mountain Coffee Roasters stock. Previously the company’s share price had increased more than tenfold since March 2009, the third-biggest gain in the Standard & Poor’s Midcap 400 Index.
In his presentation, Einhorn opined that the market for Green Mountain’s new Keurig single-cup coffee brewer was limited and that the K-Cup coffee pods for the machine presented a looming patent issue for the company. He also said that Green Mountain had a litany of accounting questions.
Following Einhorn’s speech, Green Mountain’s share price fell by 10 percent, closing that day at $82.50. A few weeks later on November 9, 2011, Green Mountain’s quarterly report missed analyst expectations and its stock price plunged to $43.71.
The company’s CEO Lawrence J. Blanford cited a number of factors including changes in wholesale customer ordering patterns in our grocery and club channels for the underperformance of the company. In addition, The stock had a run up to 157 in Nov 2014, before its final pricing in the ’90s, before the company is sold.
In early February 2013, Einhorn filed a lawsuit against Apple Inc. in a Manhattan court in order to pressure the company to issue dividend-paying perpetual preferred stock. Furthermore, This was as a means of distributing some of its $137 billion in cash to shareholders.
The court ruled in favor of Einhorn and determined that Apple’s attempt to bundle a measure requiring a shareholder vote prior to issuing preferred shares with a larger shareholder proposal impermissibly bundles separate matters for shareholder consideration.
Speaking at the Sohn Investment Conference on May 4, 2015, Einhorn sharply criticized the practice of hydraulic fracturing or fracking. He said A business that burns cash and doesn’t grow isn’t worth anything. Specifically, Einhorn announced short positions on Pioneer Natural Resources and Concho Resources.
David Einhorn also shows his humorous side joking that Pioneer natural resources are a Motherfracker.
Einhorn is a known Democratic donor. He is reported to drive a Honda Odyssey. Moreover, He is also a founding Master Player of the Portfolios with Purpose virtual stock trading contest.
David Einhorn Q4 2018 Letter
Includes a detailed analysis of Greenlight Capital’s positions in AAPL, GM, TSLA, BAYRY, BAYZF, CNX, ATUS, BT, MU, MYL, MLM, TDG and not to mention TWTR.
We had another difficult quarter and lost an additional 9.1%, bringing the Greenlight Capital funds’ year to date loss to 25.7%.
During the quarter, the S&P 500 index returned 7.7%, bringing its year to date return to 10.6%.
David Einhorn Book
- Fooling Some of the People All of the Time: A Long, Short Story – 2007
David Einhorn Performance
For information on Einhorn performance please click here.
David Einhorn Poker
- Hedge fund billionaire David Einhorn and 26 other businessmen and poker players each ponied up $1 million to enter the World Series of Poker’s “Big One for One Drop ” tournament.
- Einhorn placed sixth, just short of taking home prize money, on Tuesday, July 17, 2018, night in Las Vegas